The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has advocated a fair distribution of the 13 per cent derivation revenue among states that produce oil and gas.
The Chairman of the commission, Mohammed Shehu, made the appeal on Thursday in Owerri during the inauguration of an oil and gas wells verification exercise.
Shehu explained that the commission’s constitutional responsibilities under the 1999 Constitution, as amended, include monitoring revenue generated into and disbursed from the Federation Account, including funds allocated under the 13 per cent derivation arrangement.
He said the exercise would focus on identifying and confirming the geographical coordinates of disputed oil and gas wells, alongside newly drilled wells between 2017 and 2026.
According to him, an Inter Agency Technical Committee established for the assignment would carry out physical inspections of the affected wells, verify their locations and ensure that their coordinates were accurately recorded using officially approved maps.
He added that the committee would also take relevant court judgments into consideration when addressing disputes involving oil and gas well locations.
Shehu said the committee would forward its technical findings directly to the commission for review, ratification and eventual adoption.
He described the verification exercise as essential to ensuring that revenue allocations from the Federation Account are accurate and fairly distributed, explaining that the geographical positions of oil and gas wells determine the financial entitlements of producing states.
“This exercise represents a crucial phase in establishing statutory accuracy, technical fidelity, and fiscal equity within the Federation Account allocation framework,” he said.
He further explained that the precise coordinates and geographical positions of oil and gas wells have direct implications for the legal and financial rights of the respective states.
The RMAFC chairman urged officials participating in the exercise to adhere strictly to professional surveying procedures, recognised maps and relevant legal requirements in carrying out their assignments.
He reiterated that the technical committee’s report would be submitted solely to the commission for administrative review and formal approval.